Getting Ready for the Coming Week

The Market closed on Friday with a lot of cheer, but will the uptrend continue on Monday ? There is a lot of volatility in this market, which is essentially directionless. We have many down days, then sudden sharp up moves, giving the impression of intense activity, with the net result still a zero – the market finally stays where it started from.
For the Nifty, resistance comes around 4400, then at 4500. The Index must make an effort to touch and cross 4400. A decisive close above 4400, that is sustained for three days will be the first sign that the trend is moving from down to up. Till this happens, we assume that the trend remains down.
Within this broad scenario, trading tactics must be defined. A sharp dip is a reason to take profits on short positions, maybe even take a small long position. The same applies if you see a rally. Take profits, then on signs of weakness consider going short. Not all trades will make money. That’s okay. The idea is to ensure that your profits are more than your losses.